Make sure that the first Checklist step is an Entering Milestone. If not, no status can be applied to the Candidate and they will continue to return to Needs Checklist.

To change the checklist milestone:
  1. Enrollment Management > Admissions > Admission Setup
  2. Select Checklists
  3. Edit the Checklist
  4. Click the Pencil Icon to the right of the first Milestone
  5. Mark Entering Milestone
  6. Change the Candidate Status drop-down to Inquiry
  7. Click Save